New York Employment Litigation: Lay-Off Legalities
A New York City employment litigation case centers on the issue of whether employers have to give notice to their employees of a layoff. 
Our Manhattan employment litigation attorneys know that the answer is: It depends.
We'll explain farther down, but here's what we know so far of this case:
According to Reuters, a once-prominent law firm (the 11th largest in the country) recently laid off 450 employees, following a mass exodus of 120 partners and three out of four co-chairmen.
At its peak, the firm was the employer of some 1,300 lawyers. That was back in 2007. Now, federal regulators are trying to sort through what could be a huge headache: the fact that the firm's pension plan is underfunded by about $80 million for some 1,800 people.
The firm has been mired in debt for several years, and when it asked once-highly paid partners to take a salary cut, a large number of them left.
The problems have only continued from there, including a number of lawsuits.
In one case, a janitorial service is suing for about $300,000, claiming the firm, with offices in Manhattan, has failed to pay its cleaning bill up through the end of April.
And now, it's being sued by a former employer who has filed a class action claim, saying the firm did not give her and other employees the required 60 days notice prior to the lay-off.
Employees were warned on May 4 that the firm may shutter its doors. However, it didn't actually give employees affirmative word that their employment would be terminated, effective May 11.
So does this woman, and those in the class, have a case?
Possibly.
The federal government has what is known as the Worker Adjustment and Retraining Notification (WARN) Act. This was passed in the summer of 1988 and became effective early the following year.
What WARN does is give workers protection by mandating that employers provide at least 60 days advance notice anytime there is an anticipated mass layoff or plant closing. It must be given either directly to those workers who may be affected or to their union representatives.
Employers who would fall under WARN's purview would be those that within the last year, have had more than 100 full-time employees who have worked there for longer than six months. Government agencies are exempt. The employees that would be covered would include both salaried and hourly workers and managerial staff and supervisors. The only ones not entitled to such notice would be business partners.
However, there are exceptions to WARN, and this situation may fall into that. For example, for plant closings, business partners can avoid the notice if there is any situation in which there is an opportunity to seek new capital or business and providing notice would destroy any chances for tha.
There's also an exception for "unforeseeable business circumstances." This would be closings and layoffs caused by some business circumstance that was not foreseeable at the time of notice. This is probably the defense that the law firm in this case will fall back on.
And finally, there is an exception for a natural disaster. This is example is pretty self-explanatory.
If an employer is going to use any of the above-mentioned reasons for giving less than 60 days notice, the burden of proof lies with the company.
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